State-owned Vietnam Posts and Telecommunications Corp. reported revenues of VND22.2 trillion ($1.29 billion). The country has 5.8 million Internet subscribers, of which 1.6 million use broadband services.
Discussions began in September last week, when Vimpelcom said it intends to invest $1 billion in the GSM operator. (See VimpelCom Forms Vietnam JV.)
The government is finalizing the details of GTEL's license, which will allow it to offer mobile, fixed-line, broadband, VOIP, and WiMax services.
The Vietnamese government is also setting up a Public Telecom Fund of VND1 trillion ($58 million) to expand telecom coverage in rural and mountainous areas. According to a local media report, VNPT, Viettel Telecom, EVN Telecom, and SPT have been selected to provide fixed-line coverage in 254 communities without telecom services, extend public Internet service to 30 percent of the 2,000 communities that lack access, and upgrade 600 public Internet facilities from dial-up to broadband.
"Vietnam is a key component of our regional expansion and our relationship with CMC Telecom gives us access to providing cutting-edge solutions to the growing Vietnamese economy and foreign enterprises that do business there," Enrique Y. Gonzalez, IPVG's CEO, said in a statement.
— Nicole Willing, Reporter, Light Reading